Question

1) Starbucks is one of the best known coffeehouse chains in the world. Each store sells a variety of innovative products to complement the array of coffee choices available. However, 75% of current stores are located in the United States and the expensive nature of the coffee leaves Starbucks vulnerable to changes in consumer spending behavior (such as recessions). Recently Starbucks has begun initiatives to sell its specialty coffee beans for home use, presenting a chance for a large increase in revenue and diversification. However, Starbucks faces fierce competition seeking a piece of its lucrative market share and the threat of consumer behavior changes, given its reputation rides on a singular product. Perform a SWOT analysis for Starbucks. 2) What is the forecast for May based on a weighted moving average applied to the following past demand data and using the weights: 4, 3, 2 (largest weight is for most recent data)? Nov. Dec. Jan 37 36 40 Feb 42 Mar April 4743

Answer 1

1,Like every firm and business, Starbucks has also it's own positives and negatives.

Strength:

1. Being a world famous trade mark, the new business idea will reach out to wide space.

2. Planning to sell the product which is already used by the standard firm, is quite reliable and tempting to use it.

3. Wide range of choices.

4. Fresh and tempting taste of a new product.

Weaknesses:

1. Imitation and cope to the consumer taste preferences.

2. Being a newbie, in focus on household usage, introduction of best offers and affordable price is important, to be competitive.

3. Local market culture and targets.

Opportunity:

1. Diversifying the chain towards the other regions of the world.

2. Partnership with the best market performers in the new areas.

3. Expansion of market share.

4. Innovative variety and models of products to attract youths.

Threats:

1. Competition among low cost products, and market type.

2. Consumer behaviours changes.

3. Stiff competition.

2,

Month . Data

Nov. 37

Dec. 36

Jan . 40

Feb . 42

Mar . 47

Apr . 43

May. 41

= 4(43)+3(47)+2(42)/9

= 41.